Biomass Boiler Market Size, Share and Global Trend By Feedstock (Woody biomass, Forest residue, Agriculture, Biogas & Energy Crop, Urban Residue), By Type (Fully Automated Biomass Boiler, Semi-Automated Biomass Boiler, Combined Heat and Power System), By Application (Heating, Power Generation), By End-user (Residential, Commercial, Industrial), and Regional Forecast, 2025-2032

The global biomass boiler market size was valued at USD 7322.17 million in 2024 and is projected to grow from USD 7873.82 million in 2025 to USD 13091.95 million by 2032, exhibiting a CAGR of 8.61% during the forecast period. This market growth is underpinned by decarbonization policies, rising energy security concerns, and incentives for renewable heat. Biomass boilers serve heating and power generation needs across residential, commercial, and industrial segments. Systems range from fully automated biomass boilers to semi-automated units and Combined Heat and Power (CHP) systems.

Biomass is considered as carbon neutral form of energy because the carbon dioxide is released by burning the biomass is actually absorbed by growing plants which is expected to increase the demand for a biomass boiler in the world. Rising environmental concern and government support for the installation of the biomass boiler installation are also the factors driving the growth of global biomass boiler market.

A biomass boiler is bulky and requires regular maintenance for ash collection, which hinders its growth. The initial investment is high compared to traditional gas-fired boilers and needs more space for storing fuel and wood, which acts as a restraint for the global biomass boiler market.

The extensive consumption of hydrocarbon has impacted the environment in a greater manner causing a rise in carbon emission, GHG emission, and global warming. The international community and government agencies across the world are taking an initiative to promote green energy. Biomass boiler is playing an important role in reducing carbon emission by consuming wood dust and chips, wood pellets, forest residue, etc. as a primary fuel supply to generate heat and power.

Biomass boiler releases heat which can then be utilized to heat home, and generate electricity. A biomass boiler can be installed at the commercial complex, residential societies, hotels, industries, and other places. The energy generation from biomass boiler has the least adverse impact on the environment as compared to energy generation by fossil fuel, as it releases carbon dioxide instead of carbon monoxide.

Market momentum is supported by falling costs, maturity of modular designs, and increasing IIoT-enabled maintenance. Emission standards and particulate controls drive adoption of electrostatic precipitators and advanced flue-gas cleaning. Public procurement and green heat mandates further accelerate installations, especially across Europe and parts of Asia-Pacific. Replacement demand for aging fossil-fuel boilers adds near-term volume.

Feedstock availability shapes regional opportunity. Woody biomass, forest residue, agricultural residue, energy crops, and urban residues supply combustion and gasification systems. Technology choices include conventional combustion boilers, advanced gasifiers, and CHP integration for distributed power. Key product features now emphasise automated fuel feeding, high-efficiency burners, low particulate emissions, and remote monitoring.

End users vary by scale. Residential and district heating schemes often select compact automated boilers. Industrial users and utilities prefer CHP for heat recovery and onsite power. SMEs favour lower-capex semi-automated systems for process heat. Large enterprises and EPC contractors pursue turnkey biomass solutions with long-term fuel contracts.

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Market Drivers & Trends

Decarbonization commitments drive biomass boiler adoption as a lower-carbon alternative to coal and oil. National heat strategies and renewable heat obligations prioritise biomass for industrial and district heating. Governments offer subsidies, tax credits, and heat incentive schemes to accelerate deployment.

Feedstock dynamics determine feasibility. Agricultural residues, forest thinnings, and urban wood waste provide low-cost inputs in many regions. Biogas and energy crops support CHP and gasification systems where solid biomass supply is constrained. Logistics solutions and pelletization expand usable feedstock pools.

Technology advances increase efficiency and reduce emissions. Automated fuel handling, staged combustion, and low-NOx burners improve thermal performance. Integrated flue-gas cleaning and particle removal systems address air-quality concerns. Gasification platforms broaden fuel flexibility and enable cleaner combustion.

Decentralized energy trends and microgrids boost CHP adoption. Industrial sites value onsite power and heat recovery to cut energy bills. District heating expansions in urban areas prefer biomass-linked heat sources where sustainable wood supplies exist. Digitalization and IIoT enhance operations. Remote monitoring, predictive maintenance, and automated control systems extend service intervals. Vendors bundle diagnostics with maintenance contracts to reduce downtime and optimize fuel consumption.

Economic and social drivers also matter. Rural employment from feedstock supply chains and local energy security increase political support. Circular economy models pair biomass power with waste management and agricultural residue valorization. That alignment makes biomass boilers integral to sustainable regional energy strategies.

Air-quality regulations can restrict combustion technologies in urban cores. Capital intensity and project permitting extend lead times. Still, the interplay of policy, technology, and feedstock economics sustains a multi-year growth trajectory.

Market Segmentation By Feedstock

Woody Biomass

Woody biomass includes forest residue, sawmill byproducts, and wood chips. It offers stable calorific value and low ash content. Utilities and district heating plants prefer it for sustained combustion. Supply chain relies on forestry operations and pellet mills. Growth opportunities exist where sustainable forest management supports continuous supply. Woody biomass is most popular among these feedstocks and widely used in biomass boiler owing to its easy availability and low cost.

Forest Residue

Forest residue consists of branches, bark, and tops left after harvest. It lowers feedstock costs and supports forest health. Collection logistics can be complex and seasonal. Technology must handle moisture variability and fines. Regions with active timber sectors see strong demand.

Agriculture Residue

Straw, husks, and stalks are common agricultural residues. They are abundant in crop-producing regions. These residues often have higher ash and silica content, raising fouling risk. Boilers and gasifiers must use tailored grate designs and ash-handling systems. Co-firing and pelletization mitigate feed handling issues.

Biogas & Energy Crops

Anaerobic digestion produces biogas from organic wastes and energy crops. Biogas-fueled boilers and CHP units provide flexible, low-emission power and heat. This feedstock suits facilities with steady organic streams, such as agro-industrial complexes. Biogas integration supports circularity and reduces landfill emissions.

Urban Residue

Wood waste and combustible fractions from municipal solid waste can fuel biomass boilers. Waste-to-energy projects pair mass-burn or processed fuels with thermal plants. Environmental permitting and public acceptance are major factors for urban applications.

Market Segmentation By Type

Fully Automated Biomass Boilers

Fully automated systems include automated fuel handling, ash removal, and control systems. They reduce labor and optimize combustion across load ranges. Residential district schemes and commercial campuses prefer these for reliability. Capex is higher, but lifecycle O&M costs trend lower. 

Fully automated biomass boiler is the most efficient type of boiler as the wood pellets or chips are directly fed into the boiler combustion chamber through a hopper. In CHP boiler both heat and power are produced but they are quite expensive for domestic purpose.

Semi-Automated Biomass Boilers

These systems require manual fuel feed or simplified mechanical assistance. SMEs and small commercial users select them for lower upfront costs. Semi-automated designs offer acceptable efficiency with manageable maintenance. They serve agricultural processing, small factories, and rural hotels.

Combined Heat and Power (CHP) Systems

CHP captures both electricity and thermal output. Industrial and district heating operators value CHP for fuel-to-energy efficiency gains. Integration complexity and grid interconnection requirements are higher. CHP projects often need longer-term fuel contracts and expert EPC partners.

Market Segmentation By Application

Heating

Residential and commercial heating includes hot water and steam generation. District heating networks benefit from centralized biomass plants. Heating applications prioritize quick start-up, stable temperature control, and low particulate emissions. Integration with thermal storage optimizes load management.

Power Generation

Electricity from biomass uses steam turbines or CHP engines. Power-focused plants require robust feedstock logistics and consistent calorific input. Utility-scale projects often combine biomass with co-firing in existing coal boilers to reduce capital needs.

Market Segmentation By End-User

Residential

Home-scale pellet boilers and small automated units deliver space heating and hot water. Consumers favor compact footprints and low emissions. Local installers and supply chains matter for market penetration.

Commercial

Hotels, hospitals, and campuses choose biomass for predictable energy costs and sustainability branding. Systems emphasize redundancy, remote monitoring, and integration with existing HVAC.

Industrial

The biomass boilers are widely used by the industrial segment owing to rapid urbanization and growing industrialization is the major factor for the growth of biomass boiler in the industrial segment. Large industrial users require high-capacity boilers and CHP. They negotiate long-term fuel contracts and demand turnkey EPC solutions. Reliability and compliance with industrial emission standards dominate procurement.

Regional Insights

North America Biomass Boiler Market Trends

North America shows balanced growth driven by industrial heat demand and rural biomass projects. The United States offers incentives for renewable heating and renewable identification numbers (RINs) influence fuel economics. Large paper mills and agro-industries adopt CHP to cut costs. Canada’s forest sector supports woody biomass supply chains. Key dynamics include feedstock pelletization and modular CHP deployments. Infrastructure modernization and fleet replacements support near-term demand. Regulatory pressure on methane and carbon emissions reinforces biomass as a transition option.

United States Market Biomass Boiler Market Trends

The U.S. market benefits from federal and state incentives promoting clean heat. Agricultural residues and wood pellets provide regionally sourced fuel. Industrial CHP projects and district heating retrofits underpin substantial investments. Air-quality permitting is a local consideration but technology improvements mitigate particulate emissions. The manufacturing base for biomass boilers and pellet producers supports domestic supply.

Europe Biomass Boiler Market Trends

Europe leads on policy-driven biomass boiler adoption. EU directives and national renewable heat incentives drive district heating conversions. Germany and Nordic countries emphasize biomass CHP for combined electricity and heat efficiency. Sustainability criteria and cascade use of biomass influence feedstock sourcing. Emissions standards necessitate flue-gas cleaning for urban installations. Financing mechanisms for municipal projects help scale deployment rapidly.

Asia-Pacific Biomass Boiler Market Trends

Asia-Pacific features dynamic expansion in China, India, and Southeast Asia. China’s rural biomass heating initiatives and industrial boilers dominate early growth. India focuses on agro-residue utilization and decentralized power solutions. Japan invests in CHP for industrial clusters and biomass co-firing. Manufacturing capacity in the region supports export of boilers and pellet-production equipment. Feedstock logistics and seasonality remain operational challenges.

Latin America Biomass Boiler Market Trends

Latin America leverages abundant agricultural residues and sugarcane bagasse for boilers and CHP. Brazil’s sugar and ethanol sectors use bagasse-driven CHP extensively. Mining and industrial process heat create additional demand in Chile and Peru. Investments hinge on commodity cycles and public infrastructure spending.

Middle East & Africa Biomass Boiler Market Trends

Middle East and Africa show targeted biomass use where feedstock is available or waste-to-energy is viable. Desalination plants and petrochemical utilities explore biomass co-firing and cogeneration. African markets experiment with modular biomass and gasification for rural electrification. Urban air-quality and fuel availability limit rapid urban adoption but pilot projects increase.

Regional Demand Drivers & Trade

Regional differences stem from feedstock availability, policy frameworks, and industrial structure. Europe emphasizes sustainability and district heating. Asia-Pacific focuses on industrialization and rural electrification. North America centers on industrial CHP and forest-sector integration. Export-import flows of pellets and equipment tie markets together, especially between North America, Europe, and East Asia.

Competitive Landscape

The biomass boiler market features established manufacturers, niche innovators, and regional suppliers. Leading global vendors emphasize high-efficiency combustion, modular CHP packages, and automated feeding systems.

Regional manufacturers in China, India, and Eastern Europe compete on price and rapid delivery. They serve local SMEs and decentralized projects. Tiered product strategies allow global firms to compete across commercial, industrial, and residential segments.

Key strategic themes include R&D in emissions reduction, integration of IIoT diagnostics, and turnkey EPC partnerships. Vendors bundle fuel logistics, pellet supply, and long-term service contracts to de-risk customer investments. Such integrated offers attract utilities and industrial buyers.

Mergers and acquisitions consolidate capabilities in flue-gas cleaning, control electronics, and CHP integration. Distributor networks and local service partnerships speed market entry in new geographies. Financing innovations, including energy performance contracting and green bonds, lower customer capex hurdles.

Emerging differentiators are digital services and sustainability certification. Vendors offering remote diagnostics, predictive maintenance, and verified sustainability chains capture premium pricing. Meanwhile, low-cost suppliers expand volume in emerging markets where capital constraints dominate purchasing decisions.

Key Companies Analyzed

Some of the major companies that are present in the biomass boiler market are Babcock & Wilcox, Amec Foster Wheeler, Thermax, Siemens, IHI Corporation, Doosan Heavy Industries, Thyssenkrupp, Eco vision, Hurst, Innasol Limited, AbioNova, Ansaldo, and DP CleanTech.

SEGMENTATION

Regional Analysis

The global biomass boiler market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. European Union is showing a keen interest in the adoption of green energy by promoting renewables. Countries like Germany, Sweden, Austria, and Finland are strongly adopting biomass renewables for the production of electricity and heat. In order to mitigate the rising carbon emission threat, European countries are more inclined towards non-conventional energy which is anticipating the growth of the biomass boiler in Europe. North America is the growing market for the biomass boiler owing to raising awareness to adopt renewable sources of energy to reduce carbon emission. The Asia Pacific is anticipated to be the fastest growing market for biomass boiler market owing to rapid urbanization, growing industrialization and adoption of green energy in the countries like India, Japan, and China. In Latin America, agricultural wastages are used as biomass fuel for electricity generation. Brazil, Chile, and Mexico are the major players in the biomass boiler market in Latin America.

Key Industry Developments

• In Feb 2019, In a bid to reduce pollution and increase the potential technology of biomass boiler in India and neighbouring countries, the German conglomerate ThyssenKrupp has signed an agreement with Babcock & Wilcox Volund of Denmark.
• In December 2018, Doosan Lentjes will provide its circulating fluidized bed (CFD) boiler technology at a new biomass-based power plant located in Sodengaura, Chiba Prefecture, Japan.
• In October 2018, A contract has been awarded by SK Engineering & Construction Co. Ltd. to Sumitomo SHI FW for design and supply of SMG Energy’s SMG Boiler Power Plant to be located in Gunsan City in the Republic of Korea. The project is scheduled to start its commercial operation by December 2020.